What is pay-per-mile and why is it being suggested as a replacement for vehicle excise duty?

Rumours are circulating that a pet by the mile system may replace vehicle excise duty in the next budget.

Transcript

00:00The UK could soon adopt a pay-per-mile tax, replacing the current vehicle excise duty,

00:10a part of a broader effort to modernise road taxation. This proposed system has sparked

00:15significant debate, particularly regarding its impact on lower income and key workers.

00:22Critics argue that those who must drive long distances for work, such as essential workers,

00:28would face a disproportionate financial burden. Unlike wealthier individuals who can often

00:34work from home, proponents of the pay-per-mile tax point to its potential environmental and

00:42traffic management benefits. They say by charging drivers based on the miles they travel, the

00:47system could reduce congestion and encourage the use of public transportation. Variable

00:53rates adjusted for factors like time of travel or vehicle type have also been suggested.

00:59The question is, would you support pay-per-mile instead of road tax?